U.S. manufacturing has been in decline since the 2008-2009 global financial crisis, despite a brief resurgence in productivity and employment numbers in recent years. However, revitalizing the manufacturing sector is not a simple path to job creation. Automation and artificial intelligence will make manufacturing more capital and technology intensive and will not result in significant employment opportunities for less skilled workers.

Donald Trump’s intention trickle-down economics This approach, characterized by corporate tax cuts and deregulation, aims to boost business activity and investment, which would allegedly benefit the middle and lower classes.

However, the reality is that tariffs on foreign products act as a de facto tax on Americans, contributing to inflation and rising trade deficits, as seen during Trump’s first presidency. Trade wars can also close markets for U.S. exports, further harming the economy.

America’s manufacturing advantage has declined. This shift, compounded by rising labor costs and aging infrastructure in the United States, means traditional manufacturing jobs are unlikely to return in significant numbers. Regardless of protectionist policies or economic strategies, furniture will not be sold. made in North Carolinaand neither will air conditioning installations stay in Indiana. Dislocated American workers will suddenly realize that they got the short end of the stick.

Asia must prepare for defying economic logic policies that result from the domestic American political forces that got Trump elected. The new administration’s promise to bring jobs back to Asia could cause major disruptions to existing manufacturing and trade dynamics.